Stock market development indicators and economic growth in Nigeria (1990-2009): empirical investigations

Abstract

This paper explores the hypotheses that stock market development promotes economic growth in Nigeria and attempts to confirm its validity or otherwise using quarterly data from 1990:1 to 2009:4 for Nigeria by employing vector error correction model (VECM) technique on the commonly used stock market development indicators, From the result, the model for the total value of shares traded ration (vr) has the best if followed by the market capitalization ration (mcr) model while the model for the turnover ratio (tr) lagged behind. The results mcr and vr are analysed in this paper, as they performed better than the model for it.